The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
News and legal updates
This month's legal round up includes updates from the FCA and the Insolvency Service on motor finance discretionary commission, and a report on enforcement agents overcharging the enforcement fee.
Motor discretionary commission - compensation scheme consultation
On 1 August 2025, the Supreme Court held that not all undisclosed commissions were unlawful. It also decided that motor finance companies might have entered unfair relationships with motor finance customers.
Following this judgment, the Financial Conduct Authority (FCA) has stated that it will consult on an industry-wide compensation scheme for unfairly treated motor finance customers. The FCA aims to publish a consultation by early October 2025 and for compensation to be paid in 2026.
Official Receiver’s position on motor vehicle finance mis-selling
The Insolvency Service has published their interim position following the motor finance commission Supreme Court judgment.
This states that if a motor finance agreement was taken out before the date of the bankruptcy, or the date of discharge from bankruptcy, then the right of action relating to any form of mis-selling may form part of bankruptcy proceedings.
The Insolvency Service advises former bankrupts to contact the Official Receiver to provide more information and to agree next steps.
Insolvency Service interim position
Enforcement agent firm overcharging enforcement fee
The Guardian has highlighted that Marston Holdings has overcharged the £235 enforcement fee in multiple cases.
Marston has charged more than one enforcement fee for multiple road traffic penalties against the same individual instead of the cases being linked under one enforcement fee.
Marston has acknowledged these breaches and has set up a refund scheme issuing refund cheques plus 8% interest to those that have been affected. The letters include an apology and guidance on how to contact Marston if help is required.
The Enforcement Conduct Board (ECB) has agreed a Supervised Action Plan to ensure remedies for those impacted and will work closely with Marston on the delivery of this plan. The ECB states that under ECB Standard FS1.6, firms are required to link enforcement fees where a person has multiple debts and enforcement action could reasonably be carried out at the same time.
The ECB will also launch a wider review across the enforcement sector to establish whether the same breach is occurring at other enforcement firms.
Marston enforcement fee article
ECB statement and briefing on linking of enforcement fees
Spotlight
This month's article from Shelter's Specialist Debt Advice Service.
Council tax discounts
A local authority must normally apply a discount to the council tax bill when there are less than two people with their sole or main residence in a property. Our new Shelter Legal page explains when a discount may apply, how entitlement to a discount is identified and who is disregarded when counting how many people live in a property.
Read Council tax discounts on Shelter Legal.